Question: (4 points) Consider a one-step binomial model. The current stock price is $100. The stock price will either go up to $110 or down to

(4 points) Consider a one-step binomial model. The current stock price

(4 points) Consider a one-step binomial model. The current stock price is $100. The stock price will either go up to $110 or down to $80 in 3 months. 3-month risk free interest rate is 1% per year with continuous compounding. Consider a 3-month put option with strike price $95. Compute the price of the put using risk neutral pricing. If you sell 100 such put options, how would you delta hedge your position

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